J&K's interim budget 2024-25 presented in Parliament; here's a breakdown [details]

The Revised Estimates for 2023–24 and Interim Budget 2024–25 of the Government of Jammu and Kashmir were placed before the Parliament by Union Finance Minister Nirmala Sithraman. The two Appropriation Bills on the Supplementary Budget for 2023-24 and the Vote on Account for 2024-25 will be considered by the Lok Sabha and Rajya Sabha in this regard.

The Finance Department of the UT has drafted the Supplementary Budget for the current year and the Interim Budget for the next financial year. For this, the Department assessed the revenue receipts of the UT Government from GST, motor spirit tax, excise, and stamp duty.

Further, the non-tax revenue from electricity and water supply, mining royalty, timber sales, annual rent from industrial lands, etc were also examined.

J&K's Government revenue estimated at Rs 20,867 crores

The revenue of the UT Government has been estimated at Rs. 20,867 crore. The UT Government also pursued the Government of India to get central financial assistance.

According to the official spokesperson of the J&K Government, Lieutenant Governor  Manoj Sinha and Chief Secretary Atal Dulloo led the UT's efforts in this direction. Crucial meetings were held in August 2023, October 2023, and January 2024 in the Ministry of Home Affairs and Ministry of Finance to review these demands of the UT Government.

The Union Home Minister and Union Finance Minister personally reviewed the fiscal management of the UT Government in recent months.

Accordingly, the Central Government has agreed to provide Rs 41751.44 crore to the UT Government in this financial year and Rs 37277.74 crore in the next financial year. These assistance figures have been duly captured in the Revised Estimates of 2023-24 and the Budget Estimates of 2024-25 of the Union Government.

This assistance will be provided under the MHA's demand No. 58 for assistance to the UT. This assistance includes the normal assistance (resource gap) to the UT Government, equity contribution for hydropower projects at Kiru, Kwar, and Rattle, etc.

These assistance figures are captured in the Union Budget which is already before the Parliament and the same will be taken up for discussion before the UT's interim budget. Building on this, the Government of Jammu and Kashmir drafted its Supplementary Budget for 2023-24 and Vote on Account for 2024-25.

The Finance Department also drafted the two Appropriation Bills (Supplementary Demands and Vote on Account) for placing before the Parliament.

The revised estimates for 2023-24 are overall lower than the budgeted estimates for 2023-24 as the UT government was successful in streamlining its expenditure. The supplementary demands for 2023-24 of Rs 8,712.90 crore pertain to the four Departments of Finance, Power Development, Hospitality and Protocol and Cooperatives.

The supplementary budget is required by the Finance department in view of the repayment of the debt, while the Power Development department needs to provide for power procurement.

The Hospitality and Protocol department intends to develop the new J&K Bhawan at Dwarka, New Delhi for which land will be allotted from DDA. The Cooperative department requires the funding additionally for its new CSS, Assistance to Primary Agricultural Credit Societies (PACS).

These additional demands are proposed to be catered with Supplementary Demands for the current year 2023-24.

The interim budget for 2024-25 makes provisions for the ongoing initiatives for infrastructure development, sustainable agriculture, new industrial estate, PRI level works, employment generation, developing tourism, and social inclusion.

Consultations were held with various departments.

During the preparation of the interim budget proposals, consultations were held with all the departments and various stakeholders to provide for ongoing initiatives and arrive at realistic budgetary numbers.

For finalizing expenditure proposals, assessment of financing needs of infrastructure projects, and social and economic measures undertaken by Departments were undertaken.

The budgetary exercise focused on the imperative of advancing the cause of the greater collective good within realistically realizable resources.

While the budgetary estimate for the next financial year 2024-25 is about Rs 1,18,728 crores, the UT Government has proposed the Vote on Account for Rs 59,364 crores.

This interim budget for 2024-25 covers revenue expenditure of Rs 40,081 crores and capital expenditure of Rs 19,283 crores.

The interim budget of Jammu and Kashmir for 2024-25 provides for the ongoing measures and schemes as follows -

• Rs 2959 Cr provisioned for tap-water connectivity for rural areas under Jal Jeevan Mission with Rs 532 crore as UT Share.
• Rs 934 Cr for transforming agriculture and allied sectors of the UT through the Holistic Agriculture Development Programme (HADP), including provisions for the IFAD-funded J&K Comprehensive Investment Plan (JKCIP).
• Rs 1907 Cr for rejuvenating school education infrastructure and services through funding under Samagra Shiksha Abhiyan.
• Provision of improving road connectivity with Rs 1683 Cr for PMGSY roads, Rs 300 Cr for CRF roads, and Rs 1000 Cr NABARD scheme.
• Rs. 1313 Cr for strengthening decentralized governance by providing for local area works of panchayat and urban local bodies.
• Rs. 1271 Cr for strengthening infrastructure and services in the health sector under the National Health Mission mechanism.
• Rs. 1093 Cr for rural housing under the PMAwasYojana-Grameen scheme.
• Rs. 1000 Cr for comprehensive social security coverage for Old aged, Widow, and Disabled pensions by saturation approach.
• Rs. 660 Cr for J&K's equity for in the hydro electric projects at Ratle, Kwar, and Kiru, which would provide a stable revenue source and cheaper power.
• Rs. 505 Cr for timely procurement of machinery, equipment, prosthetic aids and drugs in the Health sector through the dedicated corporation.
• Rs. 500 Cr for capitalization of the banks, including Cooperative Banks, Rural Banks, J&K Bank, etc.
• Rs. 450 Cr for infrastructure of new Colleges and Universities as per NEP vision.
• Rs. 430 Cr for women empowerment intervention ofLadliBeti and Marriage Assistance
• Rs. 400 Cr for construction of Transit accommodations for Kashmiri Pandit employees.
• Rs. 400 Cr for development of Industrial Estates and related infrastructure.
• Rs. 370 Cr under the Swachh Bharat Abhiyan (Urban) scheme.
• Rs 390 Cr for Flood Management Project of River Jhelum.
• Rs. 450 Cr for GST reimbursement to ensure timely reimbursement of the claims.
• Rs. 272Cr for DDC/BDC grants improving local governance at district and block levels.
• Rs. 174 Cr for the development of model schools under the PM-Shri scheme.
• Rs. 150 Cr for developing rooftop solar and other avenues of new and renewable energy.
• Rs. 140 Cr for the creation of Sports Infrastructure
• Rs. 100 Cr for the conclusion of the World Bank-funded Jhelum Tawi Flood Recovery Project.
• Rs. 100 Cr for Mission Youth programmes for education, skilling, and employment
• Rs. 100 Cr for heritage preservation.
• Rs 91 Cr for new tourism destinations, new circuits, Sufi circuit, and identified religious circuits, ropeways, highway resting places, and promotion of Golf.
• Rs. 70 Cr under infrastructure for the welfare of tribals for construction of Tribal Hostels/Milk Villages/ Nomad Shelters/Libraries for Gujjars.
• Rs. 100 Cr for sewerage projects in urban areas, Rs 70 Cr for the development of new Townships and affordable housing, and Rs 50 Cr for Dal development.
• Rs. 40 Cr for Tourism promotion, Rs. 15 Cr for festival promotion and for promotion of cinema/theatre.
• Rs. 40 Cr for meeting incentives as per the provisions of the Industrial Policy and Start-ups; Rs 15 Cr for trade promotion through J&K TPO; and Rs 100 Cr for Youth startup/Job fairs/employment fairs.
• Rs 30 Cr for establishment of cold storage and Rs 30 Cr for high-density plantation.
• Rs. 80 Cr for establishment of DDC/BDC/PRI accommodation and offices as well as for security arrangements of DDC/BDC/PRI representatives.
• Rs 59 Cr for construction of Police Housing colony and relief and rehabilitation
• Rs 45Cr for construction of Bunkers and for digitization and CCTVs in Police Stations
• Rs 30 Cr for improving Quality in Schools, School Infrastructure, Career Counseling, and for the introduction of additional Streams in Schools.
• Rs 5 Cr for replacement of old fleet in the transport sector.

The two Appropriation Bills on the Supplementary Demands for 2023-24 and Vote on Account for 2024-25 of the UT Government are likely to be considered by the Lok Sabha and Rajya Sabha from 7th to 9th February 2024.